Month: December 2022

Will Movie Theater Stocks Become Blockbusters?

People are going back in to the movie theaters to see the big screen. Over Christmas weekend, Avatar: the Wave of Water pulled in $64,000,000 in box office gross, and has brought in a total gross of $261,681,686 so far.

by Fred Fuld III

Over Christmas weekend, Avatar: the Wave of Water pulled in $64,000,000 in box office gross, and has brought in a total gross of $261,681,686 so far.

Puss in Boots: The Last Wish generated $12,420,000, Whitney Houston: I Wanna Dance with Somebody sold $4,765,000, and Babylon brought in $3,600,000 over the same weekend.

People are going back in to the movie theaters to see the big screen.

Unfortunately for the theater companies, their performance over the last year has been miserable.

For example, Cinemark (CNK) has dropped by 46% year to date and is down over 20% just in the last week.

However, Texas based Cinemark,  operates over 500 theaters with more than 5,800 screens in the United States, and South and Central America. 

The stock has a forward price to earnings ratio of 23, and has an earnings per share expected growth rate 0f 127% next year. Quarterly revenue growth was 49.6% year over year.

It also has a very favorable price to sales ratio of 0.45. (Remember, a P/S of less than 1 is good, above 2 is not so good.)

Marcus (MCS), which owns and operates movie theaters, along with hotels and resorts, is down 22% so far year to date.

Marcus has a nosebleed high P/E ratio of 422, but a more reasonable forward P/E of 26. Earnings per share this year were up 70.4%.

The price sales ratio is a great 0.64, and the stock is even selling below book value with a price to book of 0.96.

The stock even pays a dividend with a yield of 1.44%.

There is also Reading International (RDI), the owner of theater chains, which is down 30%, and of course the famous meme stock, AMC Entertainment (AMC) which has tanked by 74% this year.

StockSymbolYTD Price
AMC EntertainmentAMC-74%
CinemarkCNK-46%
MarcusMCS-22%
Reading InternationalRDI-30%
IMAXIMAX-22%

Will any of these stocks bounce after year end tax selling? It is impossible to know, but maybe one of these will win an award for Best Stock.

Disclosure: Author didn’t own any of the above at the time the article was written.

Stocks Going Ex Dividend in January 2023

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but during bear markets, you may want to consider avoiding this strategy. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until on or after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million. Some of the stocks have yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount, and the annual yield.

Campbell Soup Company (CPB)1/4/20230.372.60%
General Mills, Inc. (GIS)1/9/20230.542.60%
Foot Locker, Inc. (FL)1/12/20230.404.87%
Caterpillar, Inc. (CAT)1/19/20231.202.02%
Clorox Company (CLX)1/24/20231.183.25%
Hasbro, Inc. (HAS)1/31/20230.705.11%

The entire list of over 100 ex-dividend stocks will be emailed to all subscribers next week. If you are not a subscriber, you can sign up at the signup box below. Don’t miss out. Remember, it’s free!

Dividend Definitions

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.

Will Drone Stocks Get Higher?

Unmanned aerial vehicles, better known as drones, are everywhere.

by Fred Fuld III

Unmanned aerial vehicles, better known as drones, are everywhere.

They are used in all types of industries.

For example, drones are being used by the following types of businesses and organizations:
Construction
Agriculture
Insurance Claims
Offshore Oil & Gas
Police
Fire
Coast Guard
Journalism
Customs and Border Protection
Real Estate
Utilities
Pipelines
Mining
Clean Energy
Cinematography

According to InsiderIntelligence, “The drone services market size is expected to grow to $63.6 billion by 2025.”

A few large corporations are involved in drone development and production as a small part of their business, but there are a few pure plays.

Many of these stocks have taken a beating over the last year or so, so maybe there are some bargains waiting to take off.

AeroVironment (AVAV) is an Arlington, Virginia based company which creates and manufactures robotic systems with a large unmanned aircraft systems division. Their market is primarily governments so their cash flow is relatively steady.

The stock has a forward price to earnings ratio of 38 and has an earnings per share growth estimate of 63% for next year.

Kratos Defense & Security Solutions (KTOS), based in San Diego, California, provides unmanned aerial systems to the U. S. Government.

The stock has a forward P/E ratio of 24, and has an earnings per share growth estimate of 60% for next year.

Ambarella (AMBA) is a video semiconductor company which makes cameras for drones and for many other purposes. The stock has a nosebleed forward P/E of 131.

Although earnings per share for this year were up58%, earnings for next year are anticipated to be down 34%

EHang Holdings Ltd. (EH) is a China based company which produces autonomous aerial vehicles. Earnings were negative for the current year and are expected to be negative next year.

Joby Aviation Inc. (JOBY) is  building an electric vertical takeoff and landing aircraft optimized to deliver air transportation. It has had negative earnings for last year with the same expected for next year.

Maybe one of these stocks can help your portfolio rise.

Disclosure: Author didn’t own any of the above at the time the article was written.

SPACs for Tax Selling Bounce Opportunities

by Fred Fuld III

A tax selling stock is a stock that is currently selling for a low price but was trading at much higher levels earlier in the same year, or even earlier years.

When the year end approaches, many investors utilize a strategy commonly referred to as tax harvesting , which is the selling of stocks at a loss to offset any gains that may have been made during the year.

Because of the heavy selling, the prices of stocks that have dropped substantially tend to sink far more than what would usually take place during the rest of the year. Then in January, with the strong selling over with, these stocks can recover somewhat.

So traders and investors are on the lookout for tax selling bounce stocks that are trading at much lower prices, hoping for a bounce in January, once the tax selling is over.

One type of stock that has been significantly hit were the SPACs, the special purpose acquisition companies that were so popular a few years ago.

These vehicles, also known as blank check companies, made it easy for private companies to go public. Some of the more well known SPACs include DraftKings (DKNG), down 49% year-to-date, and Virgin Galactic (SPCE), down 66%.

Unfortunately, the returns haven’t been so great, with many of them experiencing losses of over 90% from their highs.

Here are some additional SPACs that are down over 50% year-to-date. You will notice that several of them are electric vehicle companies.

CompanySymbolYTD Return
ArrivalARVL-96%
Shift TechnologiesSFT-93%
IronNetIRNT-92%
Ree AutomotiveREE-91%
CanooGOEV-82%
BuzzFeedBZFD-80%
LucidLCID-77%
AppHarvestAPPH-77%
WeWorkWE-75%
SoFiSOFI-73%
Lordstown MotorsRIDE-59%
FiskerFSR-54%
PolestarPSNY-50%

A couple things to remember. There is no guarantee that these stocks will bounce back in January, as there is usually a reason the stocks dropped so much in the first place.

Also, timing is everything with these tax-selling stocks. Sometimes the sellers are done selling in mid-December, sometimes they wait until year end.

Hope you get a bounce in your portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written.